Real Estate Brokerage Quiz

What is the primary function of a real estate broker?

• Acts as a principal in real estate transactions

• Develops real estate properties

• Negotiates real estate transactions between buyers and sellers for a fee

• Appraises real estate properties

Under the Law on Agency, the real estate broker acts as a(n):

• Principal

• Agent

• Third party

• Sub-agent

The following are the essential elements of a contract EXCEPT:

• Consent

• Object

• Witnesses

• Consideration

What is the difference between an executory and executed contract?

• Executory contracts are verbal, while executed contracts are written

• Executory contracts still require obligations to be fulfilled, while executed contracts are fully performed

• Executory contracts involve leasing, while executed contracts involve sales

• Executory contracts are always invalid, while executed contracts are always enforceable

Which best describes the Statute of Frauds in real estate?

• A law that requires real estate contracts to be in writing to be enforceable

• A rule that prevents fraud in real estate transactions

• A method of verifying the authenticity of property titles

• A penalty for real estate fraud

If a seller is forced to sign a contract under threat, what element of a contract is violated?

• Cause

• Object

• Consent

• Consideration

Which type of listing agreement allows multiple brokers to sell the property, but only the first broker to secure a buyer earns the commission?

• Exclusive Right to Sell

• Exclusive Agency

• Open Listing

• Net Listing

In an Exclusive Agency Listing, what happens if the owner sells the property without the broker’s help?

• The broker still gets a commission

• The broker shares commission with the buyer

• The broker is not entitled to a commission

• The buyer pays the broker

Which clause in a listing agreement ensures that a broker earns a commission even if the sale occurs after the listing period, as long as the broker was the procuring cause?

• Escalation Clause

• Holdover Clause

• Contingency Clause

• Option Clause

If a broker successfully sells a property worth ₱10,000,000 with a 5% commission rate, how much is their commission?

• ₱50,000

• ₱500,000

• ₱5,000,000

• ₱1,000,000